1. Field of the Invention
The present invention relates to an apparatus for reading information stored on a magnetic strip card and transmitting the data to a remote location. More particularly, the present invention relates to a portable card reader, especially for use with a credit card, phone card, or the like, which transmits information read from the card over a telephone line or any other form of transmission of information.
2. Description of the Related Art
Plastic cards having electronically stored data are widely used to perform a large variety of tasks, from being used as conventional credit, telephone, or bank cards to use as a security key to operate a door lock. Other types of cards are gasoline credit cards, building, room and/or elevator security access cards, personnel cards, Automated Teller Machine (ATM) cards, debit cards and cash cards. For purposes of this application, however, these cards will be generically referenced as "authorization cards" or just "cards."
Authorization cards fall into three general categories: magnetic, electronic or "smart cards," and passive electronic cards. Confidential information, such as a unique account or card number, is typically stored on the card. In addition, the card number is printed on the face of the card, usually together with other security information such as the owner's name, the card's expiration date, and/or a Personal Identification Number (PIN).
In order to complete a given transaction at the point of sale, the card number and/or other confidential information is transmitted from the card to a card reader for recognition and authorization by running the card through the card reader.
However, when the card is located remote from the card reader, such as with transactions made by telephone, the confidential information cannot be swiped through the card reader. Hence, the card owner is forced to speak the card number, expiration date, user's name and/or other confidential information to the seller. The seller then enters the confidential information into the card reader or other authorization device in order to charge a purchased item or service.
Quite clearly, verbally giving confidential information over a telephone risks the security of the information. An unauthorized user may overhear the user speaking the confidential information, or a prior charge receipt may be used without authorization. The unauthorized user may then repeat the confidential information to another remote seller in order to fraudulently charge the user's account.